Business News of Monday, 13 March 2017
The government on Tuesday will lay the tax abolishment and reduction policies in the 2017 budget statement to parliament under a certificate of urgency.
This was disclosed by Member of Parliament (MP) for Obuasi West and incoming Deputy Minister of Finance, Kwaku Kwarteng.
According to him, the Akufo-Addo-led administration has concluded on this decision as it is keen on creating a business friendly environment for entrepreneurs and the citizenry.
Mr Kwarteng who is also a member of the Finance Committee in Parliament made the disclosure in an interview with JOYBUSINESS over the weekend at a workshop organized by the Ministry of Finance and the Information Services Department (ISD).
The workshop was to highlight some policy measures in the 2017 budget statement to Regional and District Information Officers.
“We want these relieves to accrue to the beneficiaries immediately so we are requesting parliament to treat it as an urgent matter because we want the citizens to get the benefit as soon as possible,” he said.
Among some of the tax policies to be laid under the certificate of urgency includes the 5% Value Added Tax, Removal of VAT on Financial Services, abolishment of a toll on head porters, VAT on Real Estate sales, Special Petroleum tax reduction from 17.5% to 15%.
It also includes National Electrification Levy from 5% to 3%, 17.5% VAT on selected imported medicines, VAT for traders from 17.5% to flat rate of 3%.
Meanwhile, on the abolishment of duties on the importation of spare parts, removal of levies on the importation of raw materials and machinery for production.
Also, excise duty on petroleum which forms part of the petroleum price build up would be implemented after a discussion with the ECOWAS Common External Tariffs Secretariat on.
He said the discussion would begin soon so government gets the blessing to implement the measures.
The 1 percent special import levy which was introduced by the previous administration in July 2013 would be abolished after government gets a feedback from the Secretariat, he disclosed.